House prices falling? Inflation easing? Australian recession? It’s shaping up to be a big year. Find out how 2024 is likely going to pan out and what you need to look out for.
8 things to expect in 2024…
1. Easing inflation pressures, central banks cutting rates and prospects for stronger growth in 2025 should make for okay returns in 2024. But it’s likely to be a rougher ride than 2023.
2. Global shares are expected to return a far more constrained 7%. The first half could be rough but shares should benefit from rate cuts and lower bond yields.
3. Australian shares are likely to outperform global shares. Expect the ASX 200 to end 2024 at around 7,900.
4. Bonds are likely to provide returns around running yield or a bit more, as inflation slows and central banks cut rates.
5. Unlisted commercial property returns are likely to be negative again due to the delayed impact of high bond yields and working from home.
6. Australian home prices are likely to fall as high interest rates hit demand and unemployment rises, although expect prices to continue rising in Adelaide, Brisbane and Perth. Rate cuts later in the year will help.
7. Cash and bank deposits are expected to provide returns of over 4%.
8. A rising $A is likely to take it to $US0.72.
